Reference no: EM133160289
Question - Each year, a large clothing store in Toronto, Canada sends its top five salespersons on a five-day all-inclusive retreat in Banff, Alberta. The retreat begins on the third Monday in June 2021 and ends the following Friday afternoon.
The company must purchase five coach-class airline tickets from Toronto (YYZ), Ontario to Calgary (YYC), Alberta. The total budgeted airfare for the trip is $5,000 for five tickets. As the assistant in charge of purchasing the tickets, visit the following Web address:
Find the lowest fare between the two airlines for a round-trip flight leaving the third Monday morning in June 2021 and returning Friday evening in the same week.
Required - Please complete both of the following questions, a and b. Each is worth 10 points. Please answer in detail how you got the prices and what makes you arrive at the answer.
a. On the basis of the lowest fare, calculate the total spending variance related to the ticket purchase. Is it favorable or unfavorable?
b. Does the standard seem reasonable given current ticket prices? What factors might determine whether the price variance is favorable or unfavorable?
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